Credit Suisse to cut more costs in accelerated restructuring + MORE Mar 23rd

It’s reasonably common knowledge that higher wealth accumulators in Canada will want to do some extra planning to avoid the 33% high income tax rate in the terminal return of the last surviving spouse.  This is generally accomplished by averaging in their taxable pension amounts throughout retirement, if possible.
However, a sharp eye on marginal tax rates is important in this activity, because clawbacks of the Age Amount and Old Age Security can make income averaging opportunities challenging.
In fact, when you ask the question, who pays the highest marginal tax rates in Canada, you might be surprised to know it’s not always those whose income exceeds $200,000.  The answer depends on the type of income sources and also depends on whether the taxpayer is subject to a clawback of social benefits and credits.
Let’s see how clawbacks affect seniors and investors in 2016 under various scenarios.
In the first, seniors are subject to clawbacks of the age amount, the GST/HST Credit and the Old Age Security at various income levels…

GENEVA – Credit Suisse is announcing new steps in its restructuring with greater cost cuts and plans to reduce headcount by another 2,000.
The Swiss bank is citing “disappointing financial results” because of a combination of a high, inflexible cost base, exposure to illiquid fixed income assets, tough market conditions and “historically low levels of client activity.”
The bank says it is now targeting cost reductions of at least 4.3 billion Swiss francs ($4.4 billion) by 2018, up from 3.5 billion francs previously. Savings of 1.7 billion francs are expected this year.
The company now plans to cut 6,000 jobs, of which 2,800 have already taken place. Last month the company said it was cutting roughly 4,000 jobs to reduce costs after announcing a massive pre-tax loss in the fourth quarter.
The post Credit Suisse to cut more costs in accelerated restructuring appeared first on Canadian Business – Your Source For Business News.

With budget 2016, we are starting to see a commitment to the process of tax simplification. As promised, the Liberals made changes to the federal income tax brackets. Starting in 2016, the middle class income tax bracket will drop from 22% to 20.5%. That means if your taxable income is between $45,282 and $90,563, you’ll pay less tax. However, those earning more than $200,000 a year can expect to pay more income tax, with the introduction of a new 33% tax bracket.
Those counting on a boost to their income from stock options and were worried about possible changes and caps on stock option gains need not worry. Even though a cap of $100,000 on this favourable tax treatment was anticipated, no changes were made. At present, investors and employees are taxed on 50% of the gains of stock options.
 
 
The post How the federal budget will affect income tax appeared first on MoneySense.

NEW YORK, N.Y. – When Toyota aired a Super Bowl television ad featuring a surprisingly quick Prius gas-electric hybrid eluding police, it marked a turning point for the auto industry.
For years, automakers pushed fuel efficiency to sell hybrid and electric vehicles. Now, in an era of cheap gasoline, the message is: These cars are faster and quieter than their gas-powered counterparts. And, yes, you still save on fuel.
“They’ve graduated out of the class of something that’s a bit of an oddity to drive,” says Mike O’Brien, vice-president of product planning for Hyundai. “It’s all about making these cars better.”
Until now, hybrids and electrics have largely appealed to the environmentally-conscious crowd. The vehicles cost thousands of dollars extra, and although drivers eventually recouped their money in fuel savings, the vehicles lacked the power and handling of gas-powered rivals. Electrics also suffered from driver concern that the battery could run out of juice on a trip…

There were several education highlights for students for the 2016-2017 tax year. They include:
1. An increase of 50% to the Canada Student Grant (CSG) amounts:

from $2,000 to $3,000 per year for students from low-income families;
from $800 to $1,200 per year for students from middle-income families; and

2. For part-time students, the CSG increased from $1,200 to $1,800
In total, these measures will provide assistance of $1.53 billion over five years, starting in 2016–17, and $329 million per year after that.
3. An increase to loan repayment regulations
The loan repayment threshold under the Canada Student Loans Program’s Repayment Assistance Plan has been changed to ensure that no student will have to repay their Canada Student Loan until they are earning at least $25,000 per year.
Here’s a case study:
Steven, a recent post-secondary graduate, earns $23,000 per year at his current job. He is finding it difficult to repay his outstanding Canada Student Loans debt of $12,000…